2023 Legislative Update - Week Four
Week four of the 2023 Legislative Session came to a close last week and included the half way point of the 2023 Legislative Session. There are now less than three weeks remaining in the session. There have been big pushes regarding water and water conservation. Other pushes still include schools and teacher salaries. Budget meetings have finalized giving way to state budgets to be finalized. There was one new substantial motor vehicle bill that was released during week four that will help clarify the processes during internet and out of state sales. This is SB 172, Vehicle Sales Amendments from Senator Don Ipson. Watch for details on this bill as the session continues.
New Legislative Bills for Automotive:
Vehicle Sales Amendments (SB 172)
This bill allows a licensed vehicle dealer to sell a vehicle to a buyer without the buyer being required to appear in person at the dealer's places of business. It allows the dealer to enter into a purchase contract, collect signatures, and collect payment electronically with the customer, and allows the dealer deliver a purchased vehicle to a buyer at the buyer's home or place of business. This bill helps clarify what the dealer can do in situations where the customer is out of state, communicated via online options to purchase a vehicle.
Update: The bill was heard in committee and passed unanimously. It is now on the Senate calendar to be heard on the Senate floor.
Updates on Automotive Bills:
Motor Vehicle Dealer Requirements (HB194):
The original bill language prohibits a motor vehicle dealer from requiring a purchaser to pay, as a condition of the sale, a fee or charge in addition to the negotiated purchase, other than sales and use taxes, temporary permit fees, required title fees, and required registration fees. One item among others not initially included in the bill is Dealer Documentary Fees.
Update: The bill passed out of the House and was heard in the Senate Committee last week. The bill passed out of committee in the Senate with a unanimous vote. The bill is now on the Senate calendar for 2nd and 3rd Reading.
Transportation Amendments (SB 27)
IDS along with the Utah Professional Towing Alliance, Utah Highway Patrol, local dispatch companies, and dispatch vendors have come to terms on language for solidifying the dispatch pilot program from last session into a permanent program. The 2022 pilot dispatch towing program has seen success in making the dispatch of tow trucks by the Highway Patrol very efficient. The changes in the language will give counties, cities and others that use dispatch an option to to use these third party dispatch technology companies and keep pricing regulated and fair for all those involved in the process. All those in the discussion agreed that utilizing the technology of a third party dispatch will make the process of clearing roads of vehicles more efficient.
Update: The bill completed the process in the Senate and has been introduced in the House. The bill currently sits in House Rules and will be assigned to a House committee later this week.
Automobile Franchise Amendments (SB 90)
New car dealers and manufacturers have been working since last year to come up with some simple changes to the New Automobile Franchise Act to help in warranty work and a few other items. The bill allows warranty work for licensed new car dealers to be paid at their current dealership rates. There are processes also set so that as dealers need to increase these rates the proper process is available.
Update: The bill has completed the legislative process and has been sent for enrolling and signature by the Governor.
Trailer Registration Amendments (HB 340)
This bill amends a provision related to trailers that are exempt from vehicle registration requirements to include a single-axle trailer unless the single-axle trailer is a commercial vehicle, trailer designed, used, and maintained for hire; or a travel trailer, camping trailer, or fifth wheel trailer more than 750 pounds.
Update: The bill was heard in committee and passed unanimously. There were short discussions that this may need to be reviewed for other trailers in the future. The bill is in the House for hearing on the House floor.
License Plate Requirement Amendments (SB 85)
This bill allows a historical support special group license plate to be manufactured with a partially reflective plate face. It also prohibits an individual from obscuring a license plate with a tinted or translucent license plate cover.
Update: The bill completed the process in the Senate and has been assigned to the House Transportation Committee.
Motor Vehicle Insurance Amendments (SB 131)
This bill increase the minimum motor vehicle insurance coverage limit from $15,000 to $50,000 for property damage in an accident and from $80,000 to $100,000 in any one accident whether arising from bodily injury or death of others, or from property damage.
Update: No changes.
Motor Vehicle Consumer Date Protection (SB 139)
This bill enacts provisions related to storing, sharing, and accessing motor vehicle consumer data.
Update: No changes.
Leased Tangible Personal Property Tax (SB 14)
This was an interim bill that addresses the requirement for obtaining a temporary permit for a leased vehicle and provides that the sale of leased tangible personal property from the lessor to the lessee is subject to sale and use tax.
Update: The bill has completed the legislative process and has been sent for enrolling and signature by the Governor.
We are happy to report that although there have been over twenty new legislators this session, those new legislators have been very good to work with and willing to listen to us regarding the automotive industry. It has also been refreshing to see legislators that we have worked with for a number of years to also be supportive and share the processes of the automotive industry with new legislators. Those relationships we have developed over the course of more than forty years of legislative process have been extremely helpful to the efforts at the Capitol.
Adam Jones
Independent Dealer Solutions
801-566-3802